Question 1

1 to D0. D) D1 to D2." class="answers-bank-image d-inline" rel="preload" > Figure 4.4
-Figure 4.4 illustrates the demand for guitars.If people expect the price of guitars to decrease in the near future,this would most likely bring about a movement from:

Accepted Answer

A)  point B to point C.
B)  point B to point A.
C)  D1 to D0.
D)  D1 to D2.

Question 2

Suppose that consumers expect the price of a product to decrease in the future.The result is that:

Accepted Answer

A)  the current demand for the product increases.
B)  the current demand for the product decreases.
C)  the current supply of the product increases.
D)  the current supply of the product decreases.

Question 3

When a demand curve is drawn,which of the following is held constant?

Accepted Answer

A)  people's income
B)  people's preferences
C)  prices of related goods
D)  All of the above are held constant when constructing a demand curve.

Question 4

Excess demand in an unregulated market will cause the price of a product to fall.

Accepted Answer

A) True 
 B)False

Question 5

A decrease in supply will cause the equilibrium price and quantity of a good to fall.

Accepted Answer

A) True 
 B)False

Question 6

Lettuce and spinach are substitute goods.All else equal,if a spinach beetle destroys half of the nation's spinach crop,we predict that the equilibrium price of lettuce will ________ and the equilibrium price of spinach will ________.

Accepted Answer

A)  rise;rise
B)  rise;fall
C)  fall;rise
D)  fall;fall

Question 7

From the Application,we can infer that the presence of wine lakes indicate that the market is experiencing:

Accepted Answer

A)  an equilibrium.
B)  a shortage.
C)  a surplus.
D)  All of the above are correct.

Question 8

As the price of a product rises,the demand for the product falls.

Accepted Answer

A) True 
 B)False

Question 9

Why do the demand curves for inferior goods slope downward,even though the law of demand is driven in part by the income effect?

Accepted Answer

Remember that there are two effects of a...

Question 10

People will buy more of an inferior good when their income decreases.

Accepted Answer

A) True 
 B)False

Question 11

Suppose that the Surgeon General releases a study suggesting that orange juice consumption reduces the risk of cancer.As a result of the study,we could predict that the demand curve for orange juice will ________ and the equilibrium price will ________.

Accepted Answer

A)  increase;increase
B)  increase;decrease
C)  decrease;decrease
D)  decrease;increase

Question 12

The market demand curve is:

Accepted Answer

A)  negatively sloped.
B)  upward sloping.
C)  always vertical
D)  always horizontal.

Question 13

Excess supply in an unregulated market will cause the price of a product to fall.

Accepted Answer

A) True 
 B)False

Question 14

Explain how an excess demand would lead to an increase in prices in an unregulated market.

Accepted Answer

With an excess demand,the quantity avail...

Question 15

Figure 4.7
-If demand and supply decrease in Figure 4.7,then the equilibrium:

Accepted Answer

A)  price rises.
B)  price falls.
C)  quantity rises.
D)  quantity falls.

Question 16

If incomes increase and Honda Civics are considered normal goods,then:

Accepted Answer

A)  the demand for Honda Civics will increase.
B)  the quantity demanded for Honda Civics will increase.
C)  the demand for Honda Civics will decrease.
D)  the quantity demanded for Honda Civics will decrease.

Question 17

A change in the quantity demanded of a product cannot be the result of a change in:

Accepted Answer

A)  the buyer's preference.
B)  the price of related goods.
C)  consumer income.
D)  All of the above are correct.

Question 18

The model of supply and demand is the most important tool of economic analysis.

Accepted Answer

A) True 
 B)False

Question 19

A normal good is defined as a good for which demand decreases when:

Accepted Answer

A)  the price increases.
B)  income increases.
C)  the price decreases.
D)  income decreases.

Question 20

Figure 4.6
-Figure 4.6 illustrates a set of supply and demand curves for a product.When the economy moves from point B to point C,there has been:

Accepted Answer

A)  a decrease in supply and a decrease in demand.
B)  a decrease in supply and a decrease in quantity demanded.
C)  a decrease in quantity supplied and a decrease in demand.
D)  a decrease in quantity supplied and a decrease in quantity demanded.

Exam 4: Demand, supply, and Market Equilibrium

Excess supply in an unregulated market will cause the price of a product to fall.

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A normal good is defined as a good for which demand decreases when:

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Figure 4.7 -If demand and supply decrease in Figure 4.7,then the equilibrium:

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Suppose that consumers expect the price of a product to decrease in the future.The result is that:

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Explain how an excess demand would lead to an increase in prices in an unregulated market.

Correct AnswerverifiedWith an excess demand,the quantity avail...View AnswerShow Answer

If incomes increase and Honda Civics are considered normal goods,then:

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From the Application,we can infer that the presence of wine lakes indicate that the market is experiencing:

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People will buy more of an inferior good when their income decreases.

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When a demand curve is drawn,which of the following is held constant?

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Why do the demand curves for inferior goods slope downward,even though the law of demand is driven in part by the income effect?

Correct AnswerverifiedRemember that there are two effects of a...View AnswerShow Answer

Suppose that the Surgeon General releases a study suggesting that orange juice consumption reduces the risk of cancer.As a result of the study,we could predict that the demand curve for orange juice will ________ and the equilibrium price will ________.

Correct AnswerverifiedShow Answer

A decrease in supply will cause the equilibrium price and quantity of a good to fall.

Correct AnswerverifiedShow Answer

Excess demand in an unregulated market will cause the price of a product to fall.

Correct AnswerverifiedShow Answer

The model of supply and demand is the most important tool of economic analysis.

Correct AnswerverifiedShow Answer

As the price of a product rises,the demand for the product falls.

Correct AnswerverifiedShow Answer

A change in the quantity demanded of a product cannot be the result of a change in:

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Lettuce and spinach are substitute goods.All else equal,if a spinach beetle destroys half of the nation's spinach crop,we predict that the equilibrium price of lettuce will ________ and the equilibrium price of spinach will ________.

Correct AnswerverifiedShow Answer

Figure 4.6 -Figure 4.6 illustrates a set of supply and demand curves for a product.When the economy moves from point B to point C,there has been:

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Figure 4.4 -Figure 4.4 illustrates the demand for guitars.If people expect the price of guitars to decrease in the near future,this would most likely bring about a movement from:

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The market demand curve is:

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With an excess demand,the quantity avail...
View Answer

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Remember that there are two effects of a...
View Answer

Suppose that the Surgeon General releases a study suggesting that orange juice consumption reduces the risk of cancer.As a result of the study,we could predict that the demand curve for orange juice will and the equilibrium price will .

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Lettuce and spinach are substitute goods.All else equal,if a spinach beetle destroys half of the nation's spinach crop,we predict that the equilibrium price of lettuce will and the equilibrium price of spinach will .

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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